Saudi prince seeks to become largest shareholder of Suncore

[THE INVESTOR] Riding on the mounting wave of attention the Korean market is receiving from foreign investors, Saudi Prince Khaled bin Alwaleed bin Talal, who is also chairman of KBW Investments, has decided to acquire majority stake in Korean auto parts manufacturer Suncore.

The deal will be sealed through capital increase via third-party allotment worth 15 billion won (US$13.30 million). A total of 2,901,350 shares of the KOSDAQ-traded firm will be offered to seven individual investors with 2,127,660 shares reserved for the prince. The acquired shares are scheduled to be listed on Dec. 20. 

The Saudi entrepreneur, who is often coined as one of the richest in the country by media outlets, was invited to a press conference hosted by Suncore on Oct. 20 in Yeouido, Seoul. There, he revealed plans to become the largest shareholder of the company with 5.6 percent stake in ownership, following the deal. During late morning trading, the firm’s shares were trading at 6,520 won, on the announcement, which is 5.5 percent higher from the previous day.

On the newfound cross-border partnership, the auto parts firm added, “Prince Khaled is currently managing the construction of several landmarks in Saudi Arabia such as the 200-story Kingdom Tower in Jeddah. Through the deal, our firm has secured a pathway to participate in several forthcoming projects like ‘Saudi Vision 2030’ in the Middle East.”

Saudi Vision 2030 is a long-term economic restructuring project currently being promoted in the world’s largest oil producing country to shift and diversify national focus from oil business to other sectors.

By Jung Min-kyung (mkj1105@heraldcorp.com">mkj1105@heraldcorp.com)